Mortgage Monday: Mortgage Tips for First-Time Home Buyers

Mortgage Tips for First-Time Home Buyers

There is some information that first-time home buyers must have when it comes to mortgages.

1. Interview several loan officers to find the right one for you. Start with the loan officer at the bank where you have your accounts. Find out what his or her experience is and how they assist you with a loan. Ask for some references and find out how the references were treated by the loan officer and if they liked working with that loan officer.

2.  Gather your financial information into a folder so that it is readily accessible. The information you will need consists of at least the following: Two current pay stubs for each individual, last two years W-2s, bank and asset statements for the most current two months, residence address for the past two years, name of your employer for the last two years, any loans that are outstanding, and a copy of your photo ID. Check with your lender for any other items or information they will need to process your loan application and get you pre-approved for a home loan.

3. Research a first-time home buyers guide to financing and get a copy. Guides of different quality and level of detail are available through the internet, loan officers and even local and regional companies that offer first-time home buyer programs.

4. Research programs that are offered for the first-time home buyers to assist with your loan and/or your down payment. Here in the State of Washington we have the Washington State Housing Finance Commission for assistance. There is a link to their web site in the resources section of this web site.

5. Many first-time home buyers do not understand the language or components of the real estate or mortgage market. Most first-time home buyers will tell you that much of their confusion is from a lack of understanding of many of the confusing terms involved in a real estate deal. If you do not understand a term being used, ask what it means. Do not think that you will appear stupid if you ask what something means. Real estate has a language all its own and a good real estate agent will be happy to explain what they are talking about so that you understand it.

To be continued…

 

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